Tunku Abdul Rahman University (UTAR) has received significant relief from the government, thanks to Prime Minister Datuk Seri Anwar Ibrahim.
UTAR faces a tax bill of RM83 million imposed by the Inland Revenue Board (IRB), including taxes and penalties.
However, Anwar ordered the Cabinet to cancel the tax bill, providing financial relief for the university.
The decision was confirmed through a letter from the Chief Secretary of the Treasury, Datuk Johan Mahmood Merican, which was sent to the UTAR Education Foundation.
This letter explains that the university will receive an income tax exemption for the years 2017 to 2023 under a specific subsection of the Income Tax Act 1967.
However, from 2024, UTAR will have to pay taxes again.
In addition, the UTAR Education Foundation has been granted a tax exemption for educational purposes from 2025 to 2029.
However, from 2025, foundations and universities will have to operate separately, each with its own financial accounts.
The cancellation of the RM83 million tax bill was the result of Anwar's direct intervention, ending the university's tax issue.
